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Consumerism & Finances

The blog is intended as an informative and learning resource for people struggling with their personal finances, consumer habits and debt management.

Best Ways To Avoid Debt

Tony Buchanon Tony Buchanon , 6/27/2018
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Debt can cause all sorts of problems. People who have large amounts of debt may be denied access to additional credit. This can make it harder for them to do things they want to do such as get a mortgage to buy a house or apply for a car loan. This is one of many reasons why it is important to avoid debt in the first place. Here are some of the easiest ways to keep it at bay.

1) Pay Cash

Cash is simple and easy to use. Paying cash means that you only spend what you have. This way, you'll stick to your budget. Keep enough cash on hand in a secure place as you go about your day.

2) Create a Budget

Creating a budget allows you to determine exactly how much money you have to pay for your expenses each month. When you how much everything costs, you're not guessing about your living expenses. A budget helps you keep tight control on your finances and avoid piling up debt.  

3) Keep a Spending Buddy

If you’re trying to avoid debt it helps to have someone who has the same goals you do. A spending buddy can help you stay on track and meet your personal financial goals. The spending buddy can be your husband, someone at work or your best friend. They can help you avoid spending too much.

4) Pile on the Emergency Fund

One of the biggest sources of debt are emergencies. You can quickly run up a credit card bill if you wind up in a car crash or face a sudden, unexpected illness. Avoid the need to run up debt by creating an emergency fund. You should have at least enough to pay your bills for three months.

5) Buy Now Pay Later

Buy Now Pater Later models are a useful way to buy things at low cost. You can use BNPL to afford things you want and need without the need pay for them right away.

6) Stay Away From Cash Advances

Cash advances on your credit card seem appealing. It's a good way to get access to funds without the need to run to the bank. However, keep in mind that such advances frequently carry huge interest rates. It's better to stick to the bank's ATM when you need funds.

7) Always Pay Your Balance

Credit cards are useful tools. You can use them to pay for things without the need to carry anything else with you. However, using credit cards all the time can be a trap. You want to make sure that use your credit cards wisely. This means you should pay your balance in full each month. Otherwise, you'll carry a balance. Most credit card companies charge huge interest rates on credit card balances. You can avoid any fees if you simply pay down what you owe when the bill arrives in the mail.

8) Keep Track of Your Credit Card Purchases

One of the reasons that people wind up with a credit card balance is they don't pay attention to their credit card balance. Keep all your receipts on hand. Carefully check what you've charged at the end of each day. This way, you'll know exactly how much money you need to spend when the bill arrives.

9) Eat at Home

Eating out can be quite expensive. You can save money and avoid spending too much if you decide to stay home instead. Homemade meals are not only cheaper, they're also more nutritious. Take the time to learn to cook a few basic things and then shop for what you need at the start of the week. You'll avoid debt and (hopefully) be eating better at the same time.

10) Don't Buy Too Much House

Mortgages are often the largest sources of debt for most people. Avoid this highly common problem by choosing to a home that isn't too expensive. Look for a great house that’s large enough for your current family, but also factor in your future family.


So there you have it. By sticking to these 10 tips, you will develop good spending habits and minimise the risk of getting yourself in to debt. If you’re already in a high amount of debt, you will want to contact an expert before things get out of hand.


When you get back into the green zone, you will want to do everything in your power to stay there. So start by following this guide and you’ll be on the right path to wealth!